"This is remarkable given Australia’s slowing economy and narrowing yield differentials but highlights that it’s not just central banks buying AUD despite RBA easing. A position of such size however is an obvious drag on further gains, with the low 1.05s proving rather hard work" Mr. Callow says.
With regards to the Japanese Yen, "there was also a sharp extension to JPY spec shorts, to -90.3K, the largest USD/JPY long stance since July 2007 and another headwind for further USD/JPY gains through 83" adds Sean, who sees USD/JPY lower over the next month.
On the spec EUR/USD front, "shorts were slashed to -32.8K from -66.7K, the least bearish euro stance since Sep 2011" the Westpac analyst concludes.
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